Self-Employment Tax Calculator
Calculate your self-employment tax (15.3%) and additional Medicare tax from 1099 income. See how W-2 wages affect your Social Security wage base.
SE Tax Inputs
SE Tax Results
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How Self-Employment Tax Works
Self-employment (SE) tax is the equivalent of FICA taxes for W-2 employees, but self-employed individuals pay both the employer and employee portions:
Social Security (12.4%)
Applies to 92.35% of your net business income, up to the 2026 wage base of $184,500. If you also have W-2 wages, your W-2 Social Security wages reduce the available wage base for SE tax.
Medicare (2.9%)
Applies to 92.35% of your net business income with no wage cap. An additional 0.9% Medicare tax applies to combined wages and SE income above $200,000 (single) or $250,000 (MFJ).
$400 Exemption Threshold
If your SE tax base (92.35% of net profit) is less than $400, no SE tax is owed. This means net profits below approximately $433 are exempt from SE tax.
Half SE Tax Deduction
You can deduct 50% of your regular SE tax from your adjusted gross income. This deduction reduces your federal income tax but does not apply to the additional 0.9% Medicare tax.
SE Tax Calculation Formula
- SE Tax Base = Net Business Income × 92.35%
- If SE Tax Base < $400 → No SE tax
- Social Security Tax = min(SE Tax Base, $184,500 - W-2 SS Wages) × 12.4%
- Medicare Tax = SE Tax Base × 2.9%
- Regular SE Tax = Social Security Tax + Medicare Tax
- Additional Medicare = max(0, Combined Income - Threshold) × 0.9%
Frequently Asked Questions
What is the self-employment tax rate?
The SE tax rate is 15.3%, consisting of 12.4% Social Security (up to $184,500 in 2026) and 2.9% Medicare (no cap). High earners also pay an additional 0.9% Medicare tax above $200,000 (single) or $250,000 (MFJ). Unlike W-2 employees who split FICA 50/50 with their employer, self-employed individuals pay the full 15.3%.
How is SE tax calculated?
SE tax is calculated on 92.35% of your net business income (Schedule C profit). If this amount (the "SE tax base") is $400 or more, you owe SE tax. Social Security tax applies only to the portion below the wage base ($184,500 in 2026), reduced by any W-2 Social Security wages. Medicare tax applies to the full SE tax base with no cap.
Can I deduct half of my SE tax?
Yes, you can deduct 50% of your regular SE tax from your adjusted gross income on Form 1040. This deduction represents the employer portion of the tax. It reduces your federal income tax but does not apply to the additional 0.9% Medicare tax.
Do I owe SE tax if I also have a W-2 job?
Yes, but your W-2 Social Security wages reduce the wage base available for SE tax. For example, if your W-2 wages are $100,000, only $84,500 of your SE income is subject to the 12.4% Social Security portion. The 2.9% Medicare portion applies regardless of W-2 wages.